"We are very pleased with the growth we are achieving in revenue, earnings,
EBITDA and new orders, particularly in light of uncertainty in worldwide
economies," said Thad Dupper, president and CEO. "We are now benefitting
from our investments in new product development, evidenced by increased
revenue and orders from emerging markets, as highlighted by MTN South
Africa's order for our Dynamic SIM Allocation™ (DSA) solution. We
believe that DSA is a unique solution with very significant potential for
higher margin growth. DSA orders comprised 27% of our second quarter
license and services bookings, up from 10% in the first quarter. This has
helped drive a near record backlog entering the second half of 2008,
positioning us for solid results through year-end."

Second Quarter Results

Net income in the second quarter was $775,000, or $0.04 per basic and
diluted share, a better than 10-fold increase over net income of $72,000,
or less than $0.01 per basic and diluted share, in the same quarter last
year. The increase in year-over-year net income was attributable to higher
revenue growth and a stable expense base. Earnings before interest, taxes,
depreciation, amortization, impairment, stock compensation and gain/loss on
foreign exchange transactions ("Adjusted EBITDA") for the second quarter
were $2.0 million versus $1.4 million in the same quarter last year.

The Company reported $9.6 million in revenue in the second quarter, up 6%
from revenue of $9.1 million in the same quarter last year. It was the
Company's sixth consecutive quarter of year-over-year revenue growth.
Management attributed the steady revenue growth to a combination of new
customer engagements, additional revenue from established customers, and
growing sales momentum in emerging markets. License fees and services
revenue grew by 13% to $5.3 million from $4.7 million, offsetting a slight
decline in customer support revenue, to $4.3 million from $4.4 million in
the same quarter last year. Revenue mix in the second quarter included
$5.3 million in Service Activation, $3.5 million in Numbering Solutions and
$0.8 million in Mediation.

Total costs of revenue and operating expenses in the second quarter
remained flat at $8.5 million versus the same quarter last year, reflecting
management's commitment to maintaining a lean operating structure. Sales
and marketing expense remained stable while general and administrative
expense declined by 25% to $1.2 million from $1.6 million due to lower
professional fees, headcount, and costs of facilities. Product development
expense increased 165% in the second quarter due to ongoing product
enhancements designed to drive revenue growth.

Income from operations in the second quarter increased 75% to $1.1 million
as compared with $0.6 million in the same quarter last year. It was the
Company's eighth consecutive quarter of positive operating income.

Six-Month Results

The Company reported net income of $531,000, or $0.03 per basic and diluted
share, through six months of 2008 as compared with a net loss of $254,000,
or $0.01 per basic and diluted share, in the same period last year. The
$531,000 in net income through the first half of 2008 compares with
$598,000 in net income for all of 2007. Adjusted EBITDA for the first half
of 2008 increased 14% to $2.9 million from $2.6 million in the same period
last year.

Revenue in the first half of 2008 grew to $18.8 million, a 7% increase from
$17.6 million a year ago. License fees and services revenue increased 17%
to $10.2 million from $8.7 million, more than offsetting a 3% decline in
customer support revenue, to $8.6 million from $8.9 million a year ago.
Revenue mix included $10.0 million in Activation, $6.4 million in Numbering
Solutions and $2.4 million in Mediation.

Total costs of revenue and operating expenses through six months increased
5% to $17.6 million in 2008 from $16.7 million in the comparative period
last year. The increase is primarily attributable to higher product
development costs, which were partially offset by lower general and
administrative expense. Product development costs grew to $2.0 million
from $0.9 million a year ago as the Company continued to invest in its core
solutions as well as new product offerings. General and administrative
expense declined by 17% year-to-date -- to $2.7 million from $3.2 million
-- reflecting lower professional fees, personnel and facility costs. Sales
and marketing expense was up 4% -- to $4.4 million from $4.2 million -- due
to higher costs associated with the Company's successful entry into
emerging markets.

Operating income through the first six months of 2008 was $1.2 million
compared with $859,000 in the same period a year ago.

Bookings and Backlog Highlights

The Company booked $8.3 million in new orders in the second quarter, which
equaled its first quarter total. The new orders included $5.3 million in
license fees and services, up 20% from $4.4 million in the second quarter
last year and the highest second quarter total in that category since the
Company's 2004 acquisition of Tertio Telecoms, Ltd. Customer support
orders totaled $3.0 million in the second quarter. Bookings by product
category in the second quarter included $4.9 million in Activation, $3.1
million in Numbering Solutions, and $0.3 million in Mediation.

New orders totaled $16.6 million through six months, which was down from
$18.8 million in the first half last year. The higher 2007 order number
was the result of an industry consolidation event that caused a large
carrier customer to accelerate its 2008 annual support order into the
fourth quarter of 2007. Bookings of new license and service orders, a key
leading indicator of growth, increased to $10.8 million through the first
half of 2008, up from $9.4 million in the year ago period, reflecting a 15%
growth rate. Customer support bookings through six months totaled $5.8
million in 2008. The Company defines bookings as new, non-cancelable
orders expected to be recognized as revenue during the following 12 months.

Backlog at June 30, 2008, was $17.6 million, up 16% from $15.1 million at
the same time a year ago. The license and services backlog grew 29% over
the same period, to $7.1 million from $5.5 million, and equaled the
Company's largest mid-year backlog since the Tertio acquisition.

Balance Sheet Highlights

The Company took several actions to strengthen its balance sheet in the
first half of 2008. In addition to converting the balance of its preferred
stock to common stock during the first quarter, the Company completed a
$10.0 million debt refinancing that lowered the average cash interest rate
and improved financial flexibility with more favorable covenants. The
Company reduced its year-over-year interest expense by 37% in the second
quarter and 32% for the six-month period. Also in the first quarter, the
Company used $3.0 million of existing cash to pay down its senior revolver
and subordinated debt obligations. The conversion of preferred stock,
accelerated payments on the long-term debt obligations and scheduled senior
debt payments reduced the Company's total preferred stock and long-term
debt obligations by $9.3 million during the first half. The Company
generated $3.9 million in cash from operations in the first six months of
2008, down from $6.1 million a year ago primarily as the result of longer
collection cycles from certain international customers and a $0.8 million
first quarter payment of accrued interest on subordinated debt. The cash
and cash equivalents balance at June 30, 2008 declined slightly from
year-end to $7.2 million.

Conference Call

The Company will conduct a conference call and Web cast today at 3:00 p.m.
Mountain Daylight Savings Time. The call-in numbers for the conference
call are 1-877-548-7913 for domestic toll free and 719-325-4855 for
international callers. The conference ID is 4354389. A telephone replay
will be available through August 20, 2008, and can be accessed by calling
1-888-203-1112 or 1-719-457-0820, passcode 4354389. To access a live
Webcast of the call, please visit Evolving Systems' website at
www.evolving.com. A replay of the Webcast will be accessible at that
website through August 20, 2008.

About Evolving Systems®

Evolving Systems (NASDAQ: EVOL) is a worldwide provider of software and
services to telecommunications carriers, with over 65 network operators in
more than 40 countries. The Company's software offerings address
Activation, Dynamic SIM Allocation, Number Portability, Number Management
and Mediation. These solutions help carriers deliver an improved customer
experience, shorter time-to-market and lower cost of rendering value-added
services. With an expanding solutions portfolio, global sales and support,
onshore/offshore development, and a focus on emerging markets, Evolving
Systems is well positioned for growth. Founded in 1985, the Company has
headquarters in Englewood, Colorado, with offices in the United Kingdom,
Germany, India and Malaysia.

CAUTIONARY STATEMENT

This news release contains "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995, based on current
expectations, estimates and projections that are subject to risk.
Specifically, statements about the Company's growth and future
profitability, future business, revenue and expense projections, the
Company's continued ability to post quarterly results that are similar to
those described in this press release and the impact of new products and
accounts on the Company's business are forward-looking statements. These
statements are based on our expectations and are naturally subject to
uncertainty and changes in circumstances. Readers should not place undue
reliance on these forward-looking statements, and the Company may not
undertake to update these statements. Actual results could vary materially
from these expectations. For a more extensive discussion of Evolving
Systems' business, and important factors that could cause actual results to
differ materially from those contained in the forward-looking statements,
please refer to the Company's Form 10-K filed with the SEC on March 13,
2008, as well as subsequently filed Forms 10-Q, 8-K and press releases.

Evolving Systems reports its financial results in accordance with
accounting principles generally accepted in the U.S. (GAAP). In addition,
the Company is providing in this news release non-GAAP information in the
form of adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization, impairment, stock compensation and gain/loss on foreign
exchange transaction.) Management believes adjusted EBITDA is useful to
investors and lenders in evaluating the overall financial health of the
Company in that it allows for greater transparency of additional financial
data routinely used by management to evaluate performance. Adjusted EBITDA
relates to a covenant contained in the Company's loan agreements and
therefore can be useful for lenders as an indicator of earnings available
to service debt. Readers of this adjusted EBITDA information are reminded
that adjusted EBITDA is not a recognized term under GAAP and does not
purport to be an alternative to income (loss) from operations, an indicator
of cash flow from operations or a measure of liquidity. Not all companies
calculate adjusted EBITDA identically, so this presentation may not be
comparable to similar presentations of other companies.

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